Unit
- Real property: Land and anything permanently attached to it, including buildings, trees, and minerals beneath the surface. Real property is distinct from personal property which is movable. Rights in real property include the right to possess, use, exclude others, and dispose of the land.
- Bundle of rights theory: Ownership is conceptualized as a bundle of separate sticks, each representing a distinct right. A fee simple owner holds all sticks, while a leaseholder holds only possession for a term. This framework helps explain partial interests like easements and life estates.
- Possessory versus non-possessory interests: A possessory interest gives the holder the right to occupy the land (e.g., fee simple, leasehold). Non-possessory interests include easements (right to use another's land) and profits (right to take resources). Understanding this distinction is fundamental to analyzing property disputes.
- Government power over property: Three inherent powers limit private ownership: police power (zoning, building codes), eminent domain (taking for public use with just compensation), and taxation (property taxes). These powers are limited by constitutional protections, especially the Fifth Amendment Takings Clause.
- Adverse possession: A person who openly occupies another's land for a statutory period (typically 5 to 20 years) may acquire legal title. The occupation must be hostile, actual, open and notorious, exclusive, and continuous. This doctrine resolves long-standing boundary disputes but requires strict proof.
- Fixtures versus personalty: An item once chattel may become a fixture if it is physically annexed to the land, adapted to the land's use, and intended to remain permanently. Trade fixtures (e.g., restaurant equipment) remain personal property and can be removed by a tenant. This distinction matters in sales and leases.
- Water rights: Riparian rights attach to landowners whose property borders a watercourse, while prior appropriation systems (used in western states) allocate water based on first-in-time, beneficial use. Groundwater rights vary by jurisdiction and are increasingly regulated due to scarcity.
- Air rights and subsurface rights: Ownership extends to the airspace above and the minerals below the surface, but these can be severed and sold separately. Air rights are valuable in dense cities for development, while mineral rights are often reserved in agricultural land sales. Severance creates complex ownership patterns.
Strategic Framework
Framework: Restatement of Property (Third) - Ownership Spectrum
Purpose: Classify property interests along a continuum from full ownership to mere permission, enabling practitioners to identify the rights each party holds.
- Fee simple absolute: Infinite duration, full bundle of rights, freely transferable. The default ownership form in most transactions.
- Life estate: Ownership measured by a person's lifetime; the holder may possess and use but cannot waste the property. The remainder interest passes to another upon the life tenant's death.
- Leasehold: Possession for a fixed or periodic term, subject to the landlord's reversionary interest. The tenant has exclusive possession but not the right to sell or encumber the fee.
- Easement: A non-possessory right to use another's land for a specific purpose, such as a driveway or utility line. It runs with the land and binds future owners.
- License: A personal, revocable permission to enter land (e.g., a movie ticket). Unlike an easement, it does not create a property interest and can be withdrawn at will.
Quick Revision
- Real property includes land and permanent attachments; ownership is a bundle of rights.
- Government powers (police, eminent domain, taxation) limit private property rights.
- Adverse possession can transfer title after continuous, hostile occupation for a statutory period.
- Fixtures become part of the land; trade fixtures remain personal property.
- The ownership spectrum from fee simple to license helps classify interests.